State-Assessed Property

Taxes on Land Used for Specific Purposes

There is some property in Blue Earth County that pays property taxes like other properties, however its value may be determined by the State of Minnesota. State law requires Minnesota’s Department of Revenue to value and/or tax the following property:

Air flight property (certain airplanes and equipment)

Certain pipelines and utility property

Operating railroad property (active railroad tracks and buildings)

Wind energy conversion systems (turbines that produce energy)

Solar energy production systems (solar panels and arrays)

Most of this property is valued in a somewhat different process than the way the assessor’s office determines market value for the property in Blue Earth County. These properties valued by the state are usually multi-state or national companies and they are valued as such. Then a portion of that value is attributed to Minnesota and a portion of the state’s value is attributed to our county. The Department of Revenue provides us with the values and we apply them in our system so those property owners pay property taxes similar to every other taxpayer.

A Special Note on Wind Energy Conversion Systems

The State of Minnesota determines a tax for owners of certain wind energy conversion systems based on the amount of potential energy production. If the system is over 0.25 megawatts (or two megawatts and owned by the government), it pays this production tax.

For wind energy conversion systems, the county assessor’s office still values and imposes a tax on the land underneath the system. The value of that land would be similar to the rate at which other similarly-used land is valued.

A Special Note on Solar Energy Production Systems

The State of Minnesota determines a tax for owners of certain solar energy production systems based on the amount of potential energy production. If the system is over 1.00 megawatts, it pays this production tax. Systems smaller than this size do not pay the production tax.

For solar energy systems, the county assessor’s office still values and imposes a tax on the land underneath the system. The value of that land is typically similar to the rate at which other similarly-used land is valued.